What GST-related details must be included or linked with the Shipping Bill?

The Shipping Bill must accurately capture details that link it to the corresponding GST export invoice. Key details include: The GSTIN of the exporter. The details of the corresponding GST Tax Invoice (Invoice number and date). Whether the export is being made "With Payment of IGST" (WPAY) or "Without Payment of IGST under LUT/Bond" (WOPAY). The value of the goods (which should reconcile with the GST invoice value).

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Updated on : April 24, 2025

Shipping Bill: Document for Export Clearance – Meaning, Types & Format Explained

Navigating the complexities of international trade requires a firm grasp of export documentation.

The Shipping Bill is a cornerstone of this process, serving as the primary document for obtaining customs clearance and enabling the legal export of goods from India.

DisyTax offers this comprehensive article, elucidating the Shipping Bill’s meaning, detailing its various types, and providing a clear understanding of its format and the process involved.

Decoding the Shipping Bill: Meaning and Purpose (Shipping Bill Meaning, What is a Shipping Bill?)

A Shipping Bill is a mandatory legal document that an exporter must file with the customs authorities to seek permission for exporting goods out of India. It acts as a formal declaration by the exporter, providing comprehensive details about the goods being shipped, their value, destination, and other pertinent information required by the customs for assessment and clearance. In essence, it’s an application to the customs department for granting the ‘go-ahead’ for your export consignment.

Why the Shipping Bill Holds Such Significance in Export (Importance of Shipping Bill)

The Shipping Bill is not just another piece of paperwork; it’s a critical document that serves several vital functions in the export ecosystem:

Obtaining Customs Clearance: It is the fundamental document based on which customs officials examine the export goods, ensure compliance with all relevant regulations, and ultimately grant clearance for the shipment to proceed.

Proof of Legitimate Export: A duly processed Shipping Bill acts as irrefutable proof that the goods have been legally exported from India. This is essential for claiming various export incentives and benefits, including GST refunds on exports.

Maintaining Official Records: It provides a detailed and auditable record of the exported goods, encompassing their description, quantity, value, and the identities of both the exporter and the importer. This data is crucial for future reference, audits by customs, and for the exporter’s own accounting purposes.

Facilitating Foreign Exchange Transactions: The information contained within the Shipping Bill is also utilized by the Reserve Bank of India (RBI) to monitor and regulate foreign exchange transactions related to export proceeds.

Essential for GST Refund Claims: A valid Shipping Bill is a prerequisite for claiming refunds of the Integrated Goods and Services Tax (IGST) paid on exports or for claiming a refund of the Input Tax Credit (ITC) when goods are exported under a Letter of Undertaking (LUT) or bond.

Key Information Contained Within a Shipping Bill – Understanding the Format (Details in Shipping Bill)

The structure and specific fields within a Shipping Bill can vary slightly based on the type of goods being exported and the customs port involved.

However, the core information remains consistent and typically includes:

Exporter’s Details: Name, address, GSTIN (Goods and Services Tax Identification Number), and IEC (Importer-Exporter Code).

Importer’s Details: Name and complete address of the overseas buyer.

Consignee’s Details: If the final recipient of the goods is different from the importer, their name and address are also required.

Vessel/Flight Information: Name of the ship or airline carrying the goods, the port or airport of loading, and the port or airport of final discharge.

Invoice Specifics: The unique invoice number, the date of the invoice, and the total value of the exported goods as per the invoice.

Detailed Goods Description: A precise description of each item being exported, including the exact quantity, unit of measurement (e.g., kilograms, pieces), and any specific technical specifications.

HSN (Harmonized System of Nomenclature) Code: The internationally recognized HSN code for each item, which is crucial for customs tariff classification and duty determination (if applicable).

Valuation Details: The FOB (Free on Board) value or other applicable valuation of the goods, stated in the specified currency.

Payment Terms: Information regarding the agreed-upon payment terms between the exporter and the importer, along with the currency of payment.

Country of Origin: The country where the exported goods were originally manufactured or produced.

Final Destination Country: The ultimate country to which the goods are being shipped.

Package Identification: Details of the number and types of packages (e.g., cartons, pallets) and any identifying marks or numbers on them.

Claim for Export Incentives: If the exporter is claiming any export promotion incentives or benefits, relevant details need to be mentioned.

Exporter’s Declaration: A formal declaration by the exporter affirming the accuracy and truthfulness of all the information provided in the Shipping Bill.

Customs Port Code: The specific code assigned to the customs port from where the goods are being exported.

IEC Code: The Importer-Exporter Code allotted by the Directorate General of Foreign Trade (DGFT).

Different Types of Shipping Bills for Various Export Needs (Types of Shipping Bills)

To accommodate the diverse nature of export transactions, the customs authorities have categorized Shipping Bills into several types:

Free Shipping Bill: Used for the export of goods where the exporter is not claiming any export benefits or incentives, and the goods are not subject to any export duty.

Dutiable Shipping Bill: Required for the export of goods that are subject to export duty. The exporter needs to pay the applicable export duty before the goods are cleared for shipment.

Drawback Shipping Bill: Used by exporters to claim a drawback or refund of the customs duties already paid on the imported inputs that were used in the manufacture of the exported goods.

Shipping Bill for Export Under Claim for IGST Refund: This type is used by exporters who have paid Integrated Goods and Services Tax (IGST) on their export supplies and are now seeking a refund of this tax.

Shipping Bill for Export Under LUT/Bond: Exporters who have opted to export goods without paying IGST upfront by furnishing a Letter of Undertaking (LUT) or a bond utilize this type of Shipping Bill to claim a refund of the Input Tax Credit (ITC) accumulated on the inputs used in the exported goods.

Understanding the Format: Key Sections of a Shipping Bill (Format of Export Shipping Bill)

While the precise layout might differ slightly based on the electronic filing system used, a typical Shipping Bill is structured into the following key sections:

Header: Displays the name of the customs port, the document title “Shipping Bill,” and a unique sequential serial number for identification.

General Information: Contains basic details such as the type of Shipping Bill, the port code, the date of filing, and the exporter’s reference number.

Exporter and Importer Details: Includes comprehensive information about the exporter (name, address, GSTIN, IEC) and the importer (name, address, country).

Consignee Details: If applicable, details of the ultimate recipient of the goods.

Transport Details: Information about the mode of transport (sea, air, land), the name and flag of the vessel or flight number, the port/airport of loading, and the final port/airport of discharge.

Invoice and Value Details: Contains the invoice number, date, value, currency, and other related commercial details.

Goods Details: This is a critical section providing a detailed description of each item being exported, including the HSN code, quantity, unit, value, and any applicable marks and numbers on the packages.

Payment and Insurance Details: Information about the terms of payment, the currency, and details of any insurance coverage for the shipment.

Declaration and Verification: Includes a declaration by the exporter certifying the accuracy of the information and fields for customs officials to make necessary endorsements and verifications.

The Process of Obtaining a Shipping Bill

In today’s digital environment, the filing of Shipping Bills is predominantly done electronically through the Indian Customs Electronic Data Interchange System (ICES).

The typical process involves:

Exporter Preparation: The exporter gathers all the necessary information and supporting documents related to the export shipment.

Engaging a Customs Broker (Optional but Recommended): Many exporters engage the services of a licensed customs broker who possesses the expertise and infrastructure for electronic filing.

Electronic Filing: The exporter or the customs broker prepares the Shipping Bill in the prescribed electronic format using the ICES system.

Submission to Customs: The electronically prepared Shipping Bill, along with the necessary supporting documents, is submitted to the customs authorities through the ICES portal.

Customs Processing: Customs officials review the submitted Shipping Bill and supporting documents.

They may conduct physical examination of the goods if required.

Granting Export Clearance: Once the customs authorities are satisfied that all regulations have been complied with, they grant export clearance, and the Shipping Bill is considered processed.

The Crucial Role of Supporting Documents

It’s important to note that the Shipping Bill needs to be supported by various other documents, such as the export invoice, packing list, purchase order, letter of credit (if applicable), and other documents as may be required by the customs authorities based on the nature of the goods and the destination country.

DisyTax: Your Partner in Navigating Export Documentation

Understanding and managing export documentation, including the intricacies of the Shipping Bill, can be a complex task.

DisyTax offers comprehensive support to simplify your export compliance:

Expert Guidance on Documentation: We provide clear guidance on the specific documentation requirements for your export shipments, ensuring you choose the correct type of Shipping Bill.
Assistance with Information Gathering: We help you understand the information required for accurate completion of the Shipping Bill.
Connections to Trusted Customs Brokers: We can connect you with our network of reliable and experienced customs brokers who can efficiently handle the electronic filing of your Shipping Bills.
Ensuring Regulatory Compliance: We keep you updated on the latest customs regulations and ensure your export documentation adheres to all the necessary requirements.

Conclusion: Mastering the Shipping Bill for Seamless Export Operations

The Shipping Bill is an indispensable document for any business engaged in exporting goods from India.

A thorough understanding of its meaning, different types, and the detailed format is crucial for ensuring a smooth and compliant export process.

By paying meticulous attention to the information provided and seeking expert guidance when needed, you can navigate the export documentation requirements with confidence and focus on expanding your business globally.

For the most accurate and up-to-date information, please refer to the official website of the Central Board of Indirect Taxes and Customs (CBIC): https://www.cbic.gov.in/.

FAQs On Shipping Bill

What is a Shipping Bill under GST?

A Shipping Bill is a key document required for the export of goods from India. While primarily a Customs document, it is intrinsically linked with GST for export purposes. It serves as a declaration by the exporter providing details about the goods being exported, their value, destination, and crucially, how the GST on the export is being handled (either under LUT/Bond without tax payment or with payment of IGST).

Why is the Shipping Bill important for GST exports?

The Shipping Bill is vital under GST for several reasons:

It’s mandatory for obtaining Customs clearance for exporting goods.
It provides proof that the goods have been physically exported from India.
For exports made on payment of IGST, the Shipping Bill itself is treated as the application for refund of the IGST paid.
For exports under LUT/Bond (without IGST payment), the Shipping Bill details are required to be furnished in GST returns to substantiate the claim for refund of accumulated Input Tax Credit (ITC).

The Shipping Bill must accurately capture details that link it to the corresponding GST export invoice. Key details include:

The GSTIN of the exporter.
The details of the corresponding GST Tax Invoice (Invoice number and date).
Whether the export is being made “With Payment of IGST” (WPAY) or “Without Payment of IGST under LUT/Bond” (WOPAY).
The value of the goods (which should reconcile with the GST invoice value).

How does the Shipping Bill act as a refund application for IGST paid on exports?

Under Rule 96 of the CGST Rules, 2017, if you export goods on payment of IGST, the electronically filed Shipping Bill is deemed to be the application for refund of the IGST paid. There is no need to file a separate refund application in Form GST RFD-01 for this.

What is the process of matching Shipping Bill data with GST returns for IGST refund?

When you export goods with IGST payment: a) You file your GST export invoice details (including IGST amount and Shipping Bill number/date/port code) in Table 6A of GSTR-1. b) You report the consolidated amount of IGST paid on exports in Table 3.1(b) of GSTR-3B. c) This data from GSTR-1 and GSTR-3B is transmitted from the GSTN portal to the Customs system (ICEGATE). d) The Customs system matches the details furnished in GSTR-1 with the details in the electronically filed Shipping Bill and the Export General Manifest (EGM) filed by the carrier. e) If the data matches, the Customs system processes the IGST refund.

What happens if there are mismatches between the Shipping Bill and GST return data?

Mismatches are the most common reason for delays or rejection of IGST refunds. If the details in GSTR-1 (Invoice number, date, Shipping Bill number, date, Port Code, IGST amount) do not exactly match the data in the corresponding Shipping Bill at ICEGATE, the automatic refund process will fail. The exporter would then need to identify and correct the mismatch (if possible, through amendments in GSTR-1 in a subsequent return period, subject to time limits) or manually follow up with the authorities, potentially filing a manual refund claim.

Is a Shipping Bill required for the export of services under GST?

No, a Shipping Bill is a document specifically for the export of goods. It is not required for the export of services. For export of services, the primary proof of export is the service invoice, coupled with the receipt of payment in convertible foreign exchange (substantiated by BRC/FIRC). Refund of IGST paid or accumulated ITC for export of services requires filing a separate refund application in Form GST RFD-01.

What is the role of ICEGATE in the Shipping Bill and GST refund process?

ICEGATE (Indian Customs Electronic Gateway) is the national portal of the Indian Customs. Exporters electronically file the Shipping Bill through the ICEGATE system. It acts as the interface between the exporter, Customs, and the GST system for processing IGST refunds on exports. ICEGATE receives export data from the GSTN portal and performs the critical matching with the Shipping Bill and EGM data to enable automatic refund processing.

Do I need Shipping Bill details to claim a refund of accumulated ITC when exporting under LUT/Bond?

Yes. While the Shipping Bill isn’t the refund application itself in this case (Form RFD-01 is), the details of the Shipping Bill (number, date, port code) are required to be declared in Table 6A of GSTR-1 for exports made without payment of tax. This declaration, linked with the Shipping Bill, serves as proof that the goods were indeed exported, which is a prerequisite for claiming the refund of accumulated ITC.

While Customs law defines different types of Shipping Bills based on the scheme (e.g., Drawback, EPCG, Duty-Free), from a GST perspective, the key distinction on the Shipping Bill is whether the export is being done “With Payment of IGST” or “Without Payment of IGST (under LUT/Bond)”. This declaration on the Shipping Bill determines the GST refund mechanism. The color coding (like white, green, etc.) is primarily a Customs classification related to different export schemes and duty benefits, not directly a GST distinction, though it indicates the context under which the GST treatment is applied.

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